- US$ 10 million EBRD loan package to ArmSwissBank
- Local MSMEs will be able to boost competitiveness and green transition
- Donor support from European Union
ARMSWISSBANK attracts US$10 million financial package from The European Bank for Reconstruction and Development (EBRD) to finance private sector’s investments in growth, competitiveness as well as greener and more sustainable practices in Armenia.
The Bank will receive US $5 million under the EU4Business-EBRD Credit Line, to be on-lent to local micro, small and medium-sized entities (MSMEs) with the potential to increase exports through investments in production upgrades and new greener equipment.
This programme, a flagship initiative of the EBRD and the European Union (EU), helps local companies increase their competitiveness at home and abroad by upgrading their production facilities and processes to EU standards. At least 70 percent of the loans will go to support the green transition. Borrowers will receive incentive grants and technical advice funded by the European Union under its EU4Business initiative.
The remaining US$5 million will further boost access to finance for local MSMEs, the primary source of employment in the private sector and a significant contributor to Armenia's economy. The Bank will broaden its reach, including regions beyond the capital city, in order to offer longer-term finance and attract new clients. The European Union is backing the loan for local firms under its European Fund for Sustainable Development Plus (EFSD+) guarantee scheme.
The EFSD+ financial inclusion programme is designed to empower MSMEs, fostering their competitiveness and growth. By offering strong financial tools and expertise, the programme aims to encourage intermediaries to direct new lending to those businesses that need it the most.
The financial package was signed by EBRD Managing Director for Financial Institutions, Francis Malige and ARMSWISSBANK’s Chairman of the Management Board and Executive Director, Gevorg Machanyan on the sidelines of the EBRD’s 2024 Annual Meeting and Business Forum in Yerevan.
ARMSWISSBANK is a longstanding partner of the EBRD. It operates in the corporate and investment banking sectors, offering traditional and innovative financial products.
The EBRD is the leading institutional investor in Armenia. Since it started operations there in, the Bank has invested more than €2.09 billion in 201 projects in the country’s financial, corporate, infrastructure and energy sectors, with 92 percent of those investments in the private sector.
